If a Petty Cash Fund Is Established in the Amount

question 115

Multiple Choice

If a petty cash fund is established in the amount of ₤250, and contains ₤145 in cash and ₤100 in receipts for disbursements when it is replenished, the journal entry to record replenishment should include credits to which of the following accounts?

• A) Petty Cash, ₤100.
• B) Petty Cash, ₤105.
• C) Cash, ₤100; Cash Over and Short, ₤5.
• D) Cash, ₤105.

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Definitions:

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